Dietikon, Thursday, October 22, 2009
LNG Japan Corporation and Swiss-based EGL Group have signed a memorandum of understanding (MoU) in Tokyo today to develop a partnership on liquefied natural gas (LNG). The long-term partnership will focus on the procurement and marketing of LNG in various markets worldwide.
The scope of the joint activities will cover LNG purchases and sales worldwide. The partnership takes into account the relevant presence of both LNG Japan Corporation and EGL within the different regional LNG markets. Together, LNG Japan and EGL will provide access to different LNG markets worldwide, hence aggregating demand and mitigating midstream and downstream risks. The partnership is therefore a very innovative concept within the LNG industry.
“EGL’s partnership with LNG Japan will ensure diversification and security of supply for our customers in the final downstream markets,” said Markus Brokhof, Head of EGL’s Gas Supply & Southeast Europe Division and Member of the Executive Management. EGL already supplies natural gas to customers in several European markets and has been managing certain volumes of LNG in Spain over the last couple of years. “EGL is taking a step-wise approach to scaling up regasified LNG sales to final customers in countries like Italy and Spain, as well as other countries in Southeastern and Northwestern Europe,” Mr. Brokhof added.
LNG Japan and EGL have jointly identified various synergies in their business models during the past months. The two companies have also signed a Framework Agreement for spot LNG sales and purchases as of May 2009. The MoU signed today contains details for the start-up phase of the partnership and additional contractual arrangements governing the long term relationship between LNG Japan and EGL.
About LNG
Liquefied natural gas is natural gas that has been turned into liquid by cooling it to around minus 160°C. Its volume in this aggregated state is around 600 times lower than in the gaseous form. Large quantities of natural gas can be stored in this state and transported by ship. The reduction in volume makes it much more cost-efficient to transport over long distances where pipelines do not exist. LNG is shipped around the world in specially constructed seagoing vessels.
Further information
EGL Media Office
Phone +41 44 749 40 10
E-Mail: media.ch@egl.eu
LNG Japan Corporation
Phone +81 3 6229 3400
E-Mail: kikaku@lngjapan.com
EGL LNG Japan Corporation
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